Yes.
Real estate taxes are deductible even if the taxes were from vacant land.
See the following from IRS Tax Topic 503 Deductible Taxes:
State, Local, and Foreign Real Estate Taxes
Deductible real estate taxes are generally any state, local, or foreign taxes on real property levied for the general public welfare. The charge must be uniform against all real property in the jurisdiction at a like rate.
There are popular loan programs that finance energy saving improvements through government-approved programs. You sign up for a home energy system loan and use the proceeds to make energy improvements to your home. In some programs, the loan is secured by a lien on your home and appears as a special assessment or special tax on your real estate property tax bill over the period of the loan. The payments on these loans may appear to be deductible real estate taxes; however, they're not deductible real estate taxes. Assessments or taxes associated with a specific improvement benefitting one home aren't deductible. However, the interest portion of your payment may be deductible as home mortgage interest. Refer to
Publication 936
, Home Mortgage Interest Deduction, to see whether you might qualify for a home mortgage interest expense deduction.
Many states and counties also impose local benefit taxes for improvements to property, such as assessments for streets, sidewalks, and sewer lines. You can't deduct these taxes. However, you can increase the cost basis of your property by the amount of the assessment. Refer to
Publication 551
, Basis of Assets, for more information. Local benefits taxes are deductible only if they're for maintenance, repair, or interest charges related to those benefits. See Taxes for local benefits in Chapter 22 of
Publication 17
.
If a portion of your monthly mortgage payment goes into an escrow account, and periodically the lender pays your real estate taxes out of the account to the local government, don't deduct the amount paid into the escrow account. Only deduct the amount actually paid out of the escrow account during the year to the taxing authority.
